The Singapore Law of Credit and Security is part of the Singapore Commercial Code and was designed to preventing banking and financial litigation. The Singapore legislation for banking litigation is based on the English common law and deals with debt financing and consumer credit. The credit is a provision of finance in exchange of a payment promise. Financial institutions in Singapore provide credits by cash (loan or lender credits) and by providing goods or services (sale or vendor credits). However, when the credit cannot be paid, a financial litigation will appear. Singapore companies providing credit services will usually obtain an asset to make sure the credit will be repaid. These assets called securities. If the debtor cannot repay the credit, the assets will be seized in order to avoid financial litigation. However, if the debtor does not agree with this solution a trial will usually be initiated in order to clarify how the debt must be repaid.
Singapore companies obtaining credits from financial institutions will usually fall under the Banking Security Law. Companies may apply for a credit by contracting:
Depending on the type of credit contracted, the Singapore bank will allow a company to secure the credit with one of the following types of assets, also known as corporate security assets:
In case of not being able to pay, the financial institution will be able to start a banking litigation procedure with the Singapore Commercial Court.
Our Singapore lawyers provide the following types of banking litigation services to corporate clients:
You may contact our Singapore law firm for information about all the legal services available for individuals and corporate clients.
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